Jobs in Arizona – Global gold prices plunged more than 2 percent on Wednesday (5/14) or Thursday (5/15) morning Indonesian time.
The figure reached its lowest point in more than a month, along with increasing trade optimism after the United States (US) and China agreed to a peace agreement in the tariff war.
In this case, the US and China agreed to lower high import tariffs. The US import tariff on Chinese goods, which was originally 145 percent, was reduced to 30 percent.
Quoting Reuters, this global trade optimism has increased the market’s risk appetite in investing and shifting from gold bullion. The spot gold price fell 2 percent to USD 3,181.62 per ounce.
Meanwhile, the price of gold bullion fell to USD 3,174.62 at the start of the session and the US gold futures price closed 1.8 percent lower to USD 3,188.3.
“The rise in global prices triggered by the sharp reduction in US-China tariffs has triggered a correction through technical levels in gold,” said Tai Wong, an independent metal trader.
On the other hand, Wall Street’s main indexes opened higher driven by the tariff agreement and expectations of more trade agreements.
Washington and Beijing agreed to drastically reduce tariffs and adopt a 90-day pause and await the details that are being worked out.
US President Donald Trump said he had held direct talks with Chinese President Xi Jinping on details of a trade deal, and said “potential deals” were also in the works with India, Japan and South Korea.
Gold, known as a safe haven in times of geopolitical and economic turmoil, hit a record high of $3,500.05 last month. Gold prices have risen 21.3 percent this year.
“While the long-term trend is still bullish, I wouldn’t be surprised if the bearish momentum continues for a few more days,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.
US President Donald Trump said he had held direct talks with Chinese President Xi Jinping on details of a trade deal, and said “potential deals” were also in the works with India, Japan and South Korea.
Gold, known as a safe haven in times of geopolitical and economic turmoil, hit a record high of $3,500.05 last month. Gold prices have risen 21.3 percent this year.
“While the long-term trend is still bullish, I wouldn’t be surprised if the bearish momentum continues for a few more days,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.
Meanwhile, spot silver prices fell 1.9 percent to USD 32.25 per ounce, platinum fell 0.6 percent to USD 982.05, and palladium fell 0.3 percent to USD 954.36.